Phoenix Gold (PXG)

As the gold price continues its seemingly endless march towards the heavens – last stop $US1700 – gold stocks are in hot demand and West Australian-based goldminer
Phoenix Gold
is among them. The company’s stock traded at 33.5¢ on Tuesday, near its 52-week high of 39¢, following its announcement of an agreement last week to develop a goldmine near the WA town of Kalgoorlie with a resource of 19,000 ounces. As recently as June, Phoenix Gold was trading below 20¢. The agreement is with
Norton Gold Fields
, which owns processing systems in the region and will fund the mining. Phoenix Gold is also selling stockpiles to generate cash, and it will spend the proceeds on exploration and studies on other projects in the region. The core asset Phoenix hopes to exploit is its Castle Hill discovery which is known to contain over 1 million ounces of gold. Phoenix Gold hopes to discover as much again through drilling deeper and further along the strike.